Regulatory framework for basketball betting in Hong Kong to get Legislative Council reading
The government proposes a 50 per cent tax on net profits from basketball betting.
Hong Kong.- The proposal to legalise sports betting on basketball in Hong Kong is moving forward. The bill will go to the Legislative Council for its first reading on July 2.
If passed, the proposed law would amend the Betting Duty Ordinance (Cap. 108) and its subsidiary legislation to establish a legal structure for basketball betting. The document proposes granting the secretary for home affairs and youth affairs the authority to issue basketball betting licences, amending the responsibilities of the Lottery Board and implementing restrictions aimed at minimising gambling-related harm, particularly among young people.
The document proposes a 50 per cent tax on net profits from basketball betting in a system similar to the existing model for football betting. The Hong Kong Jockey Club is expected to be the sole licensee, operating under conditions similar to those governing horse racing and football betting.
The Hong Kong Jockey Club estimates that, once the market matures, annual turnover from authorised basketball betting could reach HK$28bn (US$3.57bn), generating around HK$1.5bn (US$191m) in duty each year.
A survey conducted by the government has found that 94 per cent of respondents were in favour of legalising sports betting on basketball while only 3.4 per cent were opposed. The survey involved 1,063 participants.
Last year, Winfried Engelbrecht-Bresges, chief executive of the HKJC, estimated that up to 60 per cent of the approximately 150,000 people engaging in illegal basketball betting could be redirected towards legal avenues.
The HKJC had previously put forward a proposal for an expansion of its betting operations. Engelbrecht-Bresges said illegal sports betting in Hong Kong, including horse racing, football, basketball, tennis and esports, is worth approximately HK$350bn (US$45bn) a year, with horse racing and football representing 75 per cent and basketball 15 per cent.
